LSE-listed data and analytics company GlobalData expects platinum production to increase from 2019 to 2022.
After a contraction of 2.1% in 2016, global platinum mine production recovered marginally by 0.8% in 2017 to 6.1-million ounces, which was mainly supported by South Africa and the US having increased their output by 1.5% and 2.6% respectively.
South Africa managed to offset production losses in 2017 from the closure of some mines, with a strong performance from Anglo American Platinum’s Mogalakwena openpit mine, as well as record production from Sibanye-Stillwater’s Rustenburg-based platinum mines and Impala Platinum’s Rustenburg lease.
“Similarly, US production of platinum also increased in 2017 owing to a 3.87% production increase from Sibanye-Stillwater, with output rising to 376 000 oz,” GlobalData mining analyst Sameer Chakravarthy pointed out in a statement released on Monday.
Production is forecast to decline this year, dropping by 0.9% as a fall in the platinum price and the appreciation of the rand against the dollar lead to mine closures, coupled with high above-ground inventories.
However, looking ahead, GlobalData forecasts an expected recovery in platinum prices to prevail, with positive global vehicle sales and Asian jewellery demand driving demand.
Chakravarthy said that global platinum mine production is projected to growth at a compound annual growth rate of 2.4% from 2019 to 2022 to reach 6.7-million ounces in 2022.
This growth will be supported by the start of operations at projects across South Africa, Zimbabwe, the US and Canada, including the Platreef, Garatau and Styldift 1 mines in South Africa.